Your readings this week highlight product and service design criteria. Consider Figure 4.4 in your text and, based on your independent research, the situation faced by Bank Al Jazira in meeting the needs of its customers. What are the three most important customer requirements (not including cost) and the three most relevant technical requirements? How do those requirements impact service design for Bank Al Jazira?

Stevenson, W. (2018).Operations management(13th ed.). New York, NY: McGraw-Hill Irwin.

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the case

M&L Manufacturing makes various components for printers and copiers. In addition to supplying these items to a major manufacturer, the company distributes these and similar items to office supply stores and computer stores as replacement parts for printers and desktop copiers. In all, the company makes about 20 different items. The two markets (the major manufacturer and the replacement market) require somewhat different handling. For example, replacement products must be pack- aged individually whereas products are shipped in bulk to the major manufacturer.

The company does not use forecasts for production planning. Instead, the operations manager decides which items to produce and the batch size, based on orders and the amounts in inventory. The products that have the fewest amounts in inventory get the highest priority. Demand is uneven, and the company has experienced being overstocked on some items and out of others. Being understocked has occasionally created tensions with the managers of retail outlets. Another problem is that prices of raw materials have been creeping up, although the operations manager thinks that this might be a temporary condition.

Because of competitive pressures and falling profits, the manager has decided to undertake a number of changes. One change is to intro- duce more formal forecasting procedures in order to improve produc- tion planning and inventory management.

With that in mind, the manager wants to begin forecasting for two products. These products are important for several reasons. First, they account for a disproportionately large share of the company's profits. Second, the manager believes that one of these products will become increasingly important to future growth plans; and third, the other prod- uct has experienced periodic out-of-stock instances.

The manager has compiled data on product

demand for the two products from order records

for the previous 14 weeks. These are shown in the following table.

Week Product 1 Product 2

1 50 40

2 54 38

3 57 41

4 60 46

5 64 42

6 67 41

7 90* 41

8 76 47

9 79 42

10 82 43

11 85 42

12 87 49

13 92 43

14 96 44